cap group update – march 2015
TRANSCRIPT
CAP Group update – March 2015
Raúl Gamonal - CFO
Cerro Negro Norte mine
1
Ownership structure
Source: CAP, March 2015
19,3% 6,8% 31,3% 42,6%
47,32%
52,68%
75,0%
99,9%
25,0%
50,93% 30,56%
11,03% 57,79%
Mitsubishi
Corporation
Pension
FundsInvercap Other
Compañía Minera
del PacíficoCompañía Siderúrgica
Huachipato
Intasa
Novacero
Cintac
2
Iron ore mining
CAP Mining has three
different areas of operation
in the north of Chile,
located around the cities of:
• Copiapó
• Vallenar
• La Serena
Cities
Mines
Plants
Ports
Copiapó
La Serena
Punta Totoralillo Port
Vallenar
Guacolda II Port Los Colorados
Pellets Plant
El Algarrobo
Magnetite Plant
El Romeral
Guayacán Port
El Tofo
Cristales
Desalination Plant
El Laco
Cerro Negro Norte
Mining sites
3
Copiapó Valley
Huasco Valley
Elqui Valley
4
Cerro Negro Norte mine
5
Magnetite plant
Los Colorados mine
7
Iron ore El Romeral mine
Source: SERNAGEOMIN
Mining property
• Top 3 position in exploration concessions
• More than 700.000 meters drilled over the period 2008-2013
Ranking 2013
Hectares in exploration concessions - Chile
N° Company Hectares %
1 BHP Chile Inc 1.917.100 11,33
2 Compañía Contractual Minera Los Andes 841.100 4,97
3 CAP 677.700 4,01
4 Teck Exploraciones Mineras Chile Ltda 629.700 3,72
5 Antofagasta Minerals S.A. 514.500 3,04
6 Codelco 435.500 2,57
Ranking 2013
Hectares in exploitation concessions - Chile
N° Company Hectares %
1 Soquimich S.A. 2.861.157 20,06
2 Codelco 840.704 5,89
3 Minera Escondida Limitada 363.798 2,55
4 SCM Virginia 252.532 1,77
5 Enami 250.847 1,76
6 Antofagasta Minerals S.A. 231.392 1,62
7 CAP 205.788 1,44
8
As a result of continued successful exploration campaigns, iron ore resources have increased
progressively over the years, reaching 7,250 million tons in 2014
(1) Resources: Minerals measured on a geological ore content feasible of being mined. (2) Reserves: Minerals measured on a geological
content feasible of being mined economically. (3) CMP has the contract for processing the tailings of the Candelaria copper mine.
Source: CAP Minería
Resources and reserves of magnetic ore
9
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2009 2010 2011 2012 2013 2014
Mineral resources (1)
Tofo 27,7%
Pleito Cristales 32,8%
Los ColoradosDistrito 43,3%El Laco 49,2%
El Algarrobo Distrito30,3%El Algarrobo 45,5 %
CNN 31,7%
Candelaria 10,0%
Romeral 28,2%
Los Colorados 34,7%
3.249 3.478
4.716
5.367
6.351
7.250
Mine/Deposits & Grade (% Fe)
0
500
1.000
1.500
2.000
2.500
2009 2010 2011 2012 2013 2014
Reserves (2)
Tofo 26,1%
El Laco 56,7%
El AlgarroboDistrito 35,5%
El Algarrobo 49,0%
CNN 36,3%
Candelaria 10,0%
Romeral 30,5%
Los Colorados36,5%
2.278
2.040 2.039
1.364 1.403
2.214
Mine/Deposits & Grade (% Fe)
BF and DR Pellets (Fe 65% - 67%)
Pellet Feed (Fe 67% - 68%)
Lumps (Fe 62%)
Fines (Fe 62%)
Mining products
10
Iron ore shipments and markets
Shipments (Th.MT)
Shipments by markets and products 2014
11
10.146 10.213 11.469
12.246 12.086 12.952
2009 2010 2011 2012 2013 2014
Self - fluxing pellets and DR
pellets 14%
Pellet chips 1%
Fines 2%
Pellet feed 72%
Sinter feed 7%
Lumps 4%
China 70%
Chile 8%
Japan 7%
Bahrein 10%
Korea 1%
Malaysia 1% USA
1%
12
Main customers
Qingdao Iron and Steel
Xinyu Iron and Steel
Rizhao Iron and Steel
Jinan Iron and Steel
Wanbao Group
RGL Group*
Yaochang Group
Fangda Iron and Steel
Hangzhou Iron and Steel CAP Acero
JFE Steel Corporation
Kobelco
Nisshim Steel
Bahrain Steel
Koch
Cargill*
Deutsche Bank*
Posco
Glencore*
* Acts as trader
13
Steel production
CAP Acero
• Steel business reorganization in 2H13 to produce 700 kt/y,
with one blast furnace
• Strong adjustment in its industrial processes and workforce
lowering costs and expenses
• Sustainable growth in long products demand mainly due to the
need of grinding media supply to the mining sector
Steel focus on long products
Shipments and prices
Talcahuano
14
922 671
1.113 1.124 859
701
699 799
883 811
737 700
0
100
200
300
400
500
600
700
800
900
1.000
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2009 2010 2011 2012 2013 2014
US$
/To
n
Th.M
T
Shipments Prices
Recovery of cash generation (EBITDA)
EBITDA: Gross Margin – S&AE + Depreciation and Amortization, over the last twelve months
• Due to the reorganization and adjustment in industrial processes, the steel company has managed to
generate positive cash flow over the last six quarters
15
Net Income and EBITDA evolution U
S$ m
illio
n
-22
-17
-9 -12
-27
-14
-44
-10 -7 1 2
14
-60
-50
-40
-30
-20
-10
0
10
20
1Q13 2Q13 3Q13 4Q13 FY2014
Impairment
Net income
EBITDA
-56
-31
16 Steel processing
• Creates value-added solutions for the construction,
industry and infrastructure sectors in Chile, Peru and
Argentina
• Chile is LATAM´s most intensive user of steel in
construction
• Transition to establish new and competitive supply sources
of flat steel
Shipments and prices Sales by Sector December 2014
Steel processing
17
274 297
370 400 412
381
1.059
1.199 1.252
1.167 1.119
1.013
,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
,0
100,0
200,0
300,0
400,0
500,0
600,0
2009 2010 2011 2012 2013 2014
US$
/To
n
Th. M
T
Shipments Price
Construction 54%
Infrastructure/Roads
3%
Industrial 31%
Other 12%
Steel processing reorganization towards a lighter and lower cost structure
Reorganization and assets availability
Cintac S.A.
Cintac SAIC
Instapanel S.A.
Conjuntos Estructurales
S.A.
Inmobiliaria Cintac S.A.
Centroacero S.A.
Tecnoacero S.A.
Tecnoacero Uno S.A.
Steel Trading Company
INC.
Tupemesa S.A.
Cintac S.A.
Cintac SAIC Tupemesa S.A.
99.99% 99.99% 99.99% 100%
99.99% 99.97% 99.99% 99.99% 89.48%
99.99% 89.48%
• Assets availability for rental (or sale): Centroacero, 55,600 m2, US$1.3 million yearly
Varco Pruden, 36,000 m2, US$0.8 million yearly
18
19
Other consolidated assets
Desalination plant
20
Other consolidated assets
Power transmission line
21
Global industry update
Global economic scenario
Source: Bloomberg consensus, February 2015
•Real GDP growth expected at 7.0%
in 2015 and 6.75% in 2016 •Real GDP growth expected at 3.1% in
2015 and 2.8% in 2016
•Real GDP growth expected at 0.5% in
2015 and 1.7% in 2016
• UK real GDP growth expected at 2.6% in 2015 and
2.4% in 2016, whilst Euro Zone GDP growth is
expected at 1.2% in 2015 and 1.6% in 2016
• Real GDP growth expected at
1.1% in 2015 and 1.4% in 2016
•Real GDP growth expected at 2.7% in
2015 and 3.5% in 2016
22
•Real GDP growth expected at 2.6% in
2015 and 3.1% in 2016
Seaborne iron ore supply/demand projection
Source: Goldman Sachs, September 2014
,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Mill
ion
to
nn
es
Mill
ion
to
nn
es
Australia Brazil RoW Seaborne demand
23
• Global oversupply in fines products with grades lower than 62% Fe content
Source: Platts, March 2015
Iron ore price evolution
Platts IODEX and 1% diff vs Platts IO fines 65%
24
60,00
80,00
100,00
120,00
140,00
160,00
180,00
($/dmt)
Platts IO fines 65% Fe
IODEX CFR CHINA 62% Fe plus 3* Mid Range Diff
Supply additions is forcing displacement of higher-cost tonnes
25 Source: GTIS, Macquarie Research, February 2015
• Displacement has occurred both in China and among non-major seaborne
suppliers
Cliffs Canada
Price/cost related mine closure
1.5 Mtpy
Northland Resources
Sweden
Price related production cut
2.0 Mtpy
IMX Resources
Australia
Placed into administration – likely closure
1.6 Mtpy
Shree Minerals
Australia
Price related mine closure
0.1 Mtpy
Iron ore production cuts: 170 Mtpy in 2014
Kimberley Metals
Australia
Price related production cut
1.7 Mtpy
Noble Resources Australia
Price related mine closure
1.5 Mtpy
Labrador Iron Mines Canada
Price related mine closure
1.7 Mtpy
Feb – 14, US$ 121 per ton
Jun – 14, US$ 93 per ton Jul – 14, US$ 96 per ton
Aug – 14, US$ 92 per ton
IRC Russia
Lack of finance
1.0 Mtpy
MMX Brazil
Price related, lack of finance
6.0 Mtpy
Bellzone Guinea
Lack of finance
0.5 Mtpy
Sep – 14, US$ 83 per ton W Desert Resources
Australia
Price related mine closure
2.0 Mtpy
Oct – 14, US$ 81 per ton
JSW/Minera Santa Fe
Chile
Price related mine closure
2.0 Mtpy
London Mining
Sierra Leone
Price related, lack of finance
5.0 Mtpy
Mt. Gibson
Australia
Technical failure
4.0 Mtpy
Nov – 14, US$ 73 per ton
Pluton Resources Australia
Price related mine closure
0.8 Mtpy
Cliffs Canada
Price related mine closure
6.0 Mtpy
Iron Valley Australia
Price related mine closure
0.2 Mtpy
Source: Platts and The Commodity Manual, Morgan Stanley, February 2, 2015 * Others include Iran, Canada, Malaysia, Peru, Mongolia, Indonesia, Mexico, Russia, Venezuela, USA, New Zealand, Kazakhstan, Serbia
Dic – 14, US$ 69 per ton
African Minerals
Sierra Leone
Lack of finance, price related
20 Mtpy
Dannemora
Sweden
Lack of finance
1.2 Mtpy
Others
China, India, Others*
Price related closures
99 Mtpy
Jan – 15, US$ 67 per ton
Arrium Australia
Price related mine closure
3.6 Mtpy
CITIC Australia
Technical, commissioning issues
4.0 Mtpy
Further cuts ex-China in 2015…?
Country Company Asset Prod’n (Mtpy)
At high risk of closure: 12.4 Mtpy
Sierra Leone Timis Corporation Marampa 5.0
Australia Mineral Resources Carina 4.2
Norway Northern Iron Sydvaranger 2.2
Sweden Dannemora Mining Dannemora 1.0
At moderate risk of closure: 98.5 Mtpy
Australia FMG Cloudbreak 40.0
Australia Arrium Middleback ranges 13.0
Australia Atlas Iron Pilbara assets 12.0
Ukraine Ferrexpo Poltava/Yeristovo 11.5
Australia Cliffs Koolyanobbing 11.0
Australia BC Iron Nullagine JV 5.5
Chile CAP Minería El Romeral 3.0
Australia Grange Resources Savage River 2.5
Source: “Iron Ore: what to look for in 2015”, Wood Mackenzie, January 2015; The Commodity Manual, Morgan Stanley, February 2, 2015
Premium for higher grades ... but most concentrate producers are struggling …
2014’s international iron ore price adjustment and CMP’s cost reduction
Source: Platts, December 2014
28
2013 2014
CMP’s cash cost (US$/t) 57,4 49,2
29
Further reduction in 2015’s cash cost
29
US$/t
Magnetite plant 39.5
Cerro Negro Norte mine 41.8
Los Colorados mine 45.5
El Romeral mine 56.1
Average cash cost 44.4
High quality pellet feed - a market with big potential
Source: Wood Mackenzie, December 2014
• Pellet feed imports will almost double over the next
five years, reaching 110Mt by 2020, taking China’s
import dependency for pellet feed from 35% to 50%.
30
• The spread between pellet feed and sinter fines
switched from a discount to a premium. This
premium has averaged almost US$3/t during 2014.
China has yet to reach peak steel per capita
SOURCE: Metal Bulletin Events, Drivers of Chinese steel demand, Peter Markey, February 2015
31
• Steel intensity stabilizes or starts to decline
at around US$15,000 to US$20,000
GDP per capita
• China GDP per capita as well as its
comparison with peak steel per capita use,
especially with the US, shows upside from
current levels
• Drivers of steel intensive growth
Source: World Steel association, IMF, EY, ArcelorMittal
Steel price evolution
Source: CRUspi, March 2015
32
00
50
100
150
200
250
300
350
ene
20
07
may
20
07
sep
20
07
ene
20
08
may
20
08
sep
20
08
ene
20
09
may
20
09
sep
20
09
ene
20
10
may
20
10
sep
20
10
ene
20
11
may
20
11
sep
20
11
ene
20
12
may
20
12
sep
20
12
ene
20
13
may
20
13
sep
20
13
ene
20
14
may
20
14
sep
20
14
ene
20
15
US$
pe
r to
n
CRUspi North America
CRUspi Europe
CRUspi Asia
00
100
200
300
400
500
600
ene
20
07
may
20
07
sep
20
07
ene
20
08
may
20
08
sep
20
08
ene
20
09
may
20
09
sep
20
09
ene
20
10
may
20
10
sep
20
10
ene
20
11
may
20
11
sep
20
11
ene
20
12
may
20
12
sep
20
12
ene
20
13
may
20
13
sep
20
13
ene
20
14
may
20
14
sep
20
14
ene
20
15
US$
pe
r to
n
CRUspi Flats
CRUspi Longs
CRUmpi
Source: SSY Consultancy & Research, Seaborne Iron Ore & the Freight Market, China Iron Ore 2015
33
Freight rates to China monthly average
34
Financial performance
CAP – Consolidated financial evolution
35
USD Million 2010 2011 2012 2013 2014
Sales 1.994 2.787 2.470 2.297 1.790
EBITDA 740 1.184 764 708 381
EBITDA Margin 37,1% 42,5% 30,9% 30,8% 21,3%
Net Income 590 442 234 184 56
Cash 981 883 711 309 348
Gross Financial debt 1.001 628 719 932 1.270
Net Financial debt 20 (255) 8 623 922
Capex 207 282 777 975 450
Net Financial Debt/EBITDA - - - 0,88 2,42
Iron Ore Shipments (Th tons) 10.213 11.469 12.246 12.086 12.952
Platts 62% Fe CFR China (US$/t) 146,82 169,37 130,08 135,13 96,77
CMP – Financial evolution
36
USD Million 2010 2011 2012 2013 2014
Sales 1.271 1.770 1.406 1.431 942
EBITDA 782 1116 720 678 309
EBITDA Margin 61,5% 63,1% 51,2% 47,4% 32,8%
Net Income 902 700 355 402 113
Cash 558 501 205 46 50
Gross Financial debt - - - 159 483
Net Financial debt (558) (501) (205) 113 433
Capex 121 222 655 911 299
Net Financial Debt /EBITDA - - - 0,17 1,40
Iron Ore Shipments 10.213 11.469 12.246 12.086 12.952
Platts 62% Fe CFR China 146,82 169,37 130,08 135,13 96,77
(1) EBITDA: Gross Margin – S&AE + Depreciation and Amortization + Dividends received in cash, over the last twelve months
EBITDA contribution by business
37
77%
97% 94% 94%
98%
89%
18%
-3%
0%
-2% -2%
4% 5% 6% 6% 8% 4%
7%
-20%
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013 2014
Iron Steel Steel Processing
Credit agencies last review
38
2013 2014 2015
Fitch Ratings BBB/Stable
outlook BBB/Stable
outlook BBB/Negative
outlook
S&P BBB-/Stable
outlook BBB-/Stable
outlook
BB+/Negative
outlook
39
Business outlook
40
Seeking higher margins in CAP Mining
Reorientation of product mix
• Shipments for around 16 million MT in 2015 consider an increase in pellets, to a total of 4 million MT
• The change in the mix should enhance margins, as pellets have a premium over the pellet feed
Self-fluxing and DR
pellets; 14% Pellet feed; 72%
Others; 14%
Self-fluxing and DR
pellets; 25%
Pellet feed; 65%
Others; 10%
2014 2015(P)
Continued efforts in reducing costs and expenses, combined with a weaker Chilean
Peso, lower oil prices and idle capacity in the mining services industry in Chile will
reduce the average 2014 FOB cash cost of US$ 49.2 per ton to approximately
US$ 44.0 per ton in 2015
300
350
400
450
500
550
600
650
Feb
-10
May
-10
Au
g-1
0
No
v-1
0
Feb
-11
May
-11
Au
g-1
1
No
v-1
1
Feb
-12
May
-12
Au
g-1
2
No
v-1
2
Feb
-13
May
-13
Au
g-1
3
No
v-1
3
Feb
-14
May
-14
Au
g-1
4
No
v-1
4
CLP
pe
r U
S$
41
External factors could bring benefits to CAP Steel
Lower prices of raw materials for steel production, and a depreciated Chilean Peso
would lead CSH to positive results during 2015
Metallurgical Coal
0
50
100
150
200
250
300
350
400
450
Jan-1
1
Apr-
11
Jul-1
1
Oct-
11
Jan-1
2
Apr-
12
Jul-1
2
Oct-
12
Jan-1
3
Apr-
13
Jul-1
3
Oct-
13
Jan-1
4
Apr-
14
Jul-1
4
Oct-
14
US
$/M
t
0
20
40
60
80
100
120
140
160
180
Jan
-13
Mar
-13
May
-13
Jul-
13
Sep
-13
No
v-1
3
Jan
-14
Mar
-14
May
-14
Jul-
14
Sep
-14
No
v-1
4
Jan
-15
US
$/M
t
Iron Ore
A weaker Chilean Peso adds
competitiveness to domestic
production, as imports become more
expensive
USD/CLP
42
Reorganization and adjustments in Steel Processing
Reorganization of the company
• The reorganization of the company to achieve a simpler organizational structure decreased SG&A
expenses in 18.2% as of December 2014, YoY
• It also resulted in the availability of assets for sale or rental:
• Centroacero: 55,600 m2, US$1.3 million yearly
• Varco Pruden: 36,000 m2, US$0.8 million yearly
Working capital adjustments
• Inventories will be reduced during 2015, to free up cash
Positive economic outlook for Peru
• Through its business in Peru, Tupemesa S.A., the steel processing group will benefit from good levels
of GDP growth expected for the Peruvian economy
2015 (f) 2016 (f)
Peru
GDP growth 4.3 5.0
Chile
GDP growth 2.7 3.5
Source: Bloomberg consensus, February 2015
43
New EBITDA from CAP infrastructure in 2015
43
• Cleanairtech (desalination plant) and Tecnocap (electric transmission line) started their operations
during 2014 and are projected to contribute to the consolidated 2015 EBITDA and net income as
follows:
US$ million Cleanairtech Tecnocap
EBITDA (E) 43,6 7,4
Net income (E) 7,1 3,0
44
Protecting CAP’s cash flow and liquidity levels
142 207
282
777
975
450
150 100
0
200
400
600
800
1.000
1.200
2009 2010 2011 2012 2013 2014 2015 (E) 2016 (E)
US$
mill
ion
Current investment plan reached its
final stage
• The period within 2011 and 2014 was
strong in terms of capital expenditure, due
to the capacity increase in Los Colorados
mine (brownfield) and the development of
Cerro Negro Norte (greenfield)
• There are no relevant investments
planned for the short-term, therefore
pressure on cash disbursements will be
diminished
CAPEX for 2015 will not exceed US$ 150 million, of which US$ 60 million
correspond to consolidated maintenance CAPEX
45
Further actions to face more bearish scenarios
• CAPEX reduction
• Drilling and exploration
expenses reduction
0
50
100
150
200
2015 (E) 2016 (E)
US$
mill
ion
Maintenance capex Growth capex
Potencial cut on CAPEX related
mainly to future development in the
mining business
Expenses have averaged US$ 41
million per year during the last 5
years. This concept could be reduced 19
29
43
60
40
33
0
10
20
30
40
50
60
70
2009 2010 2011 2012 2013 2014
US$
mill
ion
Punta Totoralillo:
• 29 km north of Caldera
• Iron ore shipping
• 200,000 dwt
• Max capacity: 12 million t/y
• Effective utilization: 4.5 million t/y
Guacolda II:
• Located in Huasco City
• Iron ore shipping
• 300,000 dwt
• Max capacity: 12 million t/y
• Effective utilization: 7.2 million t/y
Huachipato:
• San Vicente bay
• Unloading coal, limestone an iron
ore & finished steel shipping
• Max capacity: 2 million t/y
• Effective utilization: 1 million t/y
Guarello:
• Guarello island, south
• Limestone shipping
• 800 kt/y
• Max capacity: 0.8 million t/y
• Effective utilization: 0.5 million t/y
Guayacán:
• Herradura bay, Coquimbo
• Iron ore shipping
• 165,000 dwt
• Max capacity: 6 million t/y
• Effective utilization: 2.7 million t/y
Las Losas:
• Located in Huasco City
• Multi purpose port
• Max capacity: 2 million t/y
• Effective utilization: 0.4 million t/y
Total capacity CAP ports: 34.8 Mt/y
Note: Weighted average of port utilization: 47% 46
Future maximization of EBITDA contribution from our ports
47
CAP is in a long
term business
Project
Production
Mt
Est. Capex
MUS$
Magnetite Plant
Expansion 1 PF 110
Tofo 6,5 PF
13,5 PF
1,700
2,900
Alcaparra 6 PF
135 Kt Conc-Cu
1,600
300
Mining future prospects
Copiapó
La Serena
Punta Totoralillo Port
Vallenar
Guacolda II Port Los Colorados
Pellets Plant
El Algarrobo
Magnetite Plant
El Romeral
Guayacán Port
Tofo North
Cristales
Desalination Plant
El Laco
Cerro Negro Norte
Productora
Alcaparra
Pajonales
Cruz Grande Port Sierra Tofo + Chupete
48
Resources Volume
[Mt]
Fe
[%]
Measured 946 25.5
Indicated 455 23.4
Inferred 190 22.5
Total 1,591 24.5
Investment (E) : 1,700 – 2,900 MUS$
• Greenfield
Production: 6.5-13,5 Mt/y of pellet feed
Stage: Conceptual engineering
El Tofo
Fe% ≥ 25 15≤Fe%<25 10≤Fe%<15 Fe%<10 Drill Hole
LEGEND
Geological Projection
Cross Section
Pit Design
49
Fe% ≥ 45 25 ≥ Fe% < 45 15 ≥ Fe% < 25 10 ≥ Fe% < 15
Núcleos Estéril
Topography
Drilling
Simbology
Cu% ≥ 0.6
0.3 ≥ Cu% < 0.6
0.1 ≥ Cu% < 0.3
0.05≥ Cu% < 0.1
Cu% < 0.05
Topography
Drilling
Simbology
Iron ore body
Iron & Copper intersection
Investment (E): 1,600 + 300 MUS$
Production: 6 Mt/y of pellet feed
135 kt/y of copper concentrate
Stage: Advanced exploration
Exploratory metallurgy
Resources Volume
[Mt]
Fe/Cu
[%]
Iron 674 24.5
Copper 423 0.26
Alcaparra (iron/copper)
Pit Design
50
• CAP Mining
• Ample portfolio of future prospects based on abundant reserves
• Projects under study are being analyzed considering current market conditions
• Global environmental constraints support the growing need for magnetite concentrate
• CAP Steel
• Focus on long steel products that distinguishes from competitors through technology and/or logistics
• Positive cash generation attained, continuous cost cutting efforts geared towards profitability
• CAP Steel Processing
• Largest flat steel processor in the Pacific coast of South America
• Leader in innovative solutions for industrial and residential construction
Conclusions
Under current market conditions, the protection of the company’s cash flow
and liquidity levels are of the utmost importance
Cost reduction initiatives and productivity improvements are at the center
of management efforts
51
This information material may include certain forward-looking statements and projections provided by CAP S.A. (the “Company“) with respect to the financial condition, results of operations, cash flows, plans, objectives, future performance, and business of the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning anticipated results and are based on the Company’s expectations and beliefs concerning future events and, therefore, involve risks and uncertainties. Such statements and projections are neither predictions nor guarantees of future events or circumstances, which may never occur, and actual results may differ materially from those contemplated (expressed or implied) by such forward-looking statements and projections. No representations or warranties are made by the Company or any of its affiliates as to the accuracy of any such statements or projections. Whether or not any such forward looking-statements or projections are in fact achieved will depend upon future events, some of which are not within the control of the Company. Accordingly, the recipient of this material should not place undue reliance on such statements. Any such statements and projections speak only as of the date on which they are made, and the Company does not undertake any obligation, and expressly disclaims any obligation, to update or revise any such statements or projections as a result of new information, future events, or otherwise
52
CAP Group update – March 2015
Cerro Negro Norte mine